BILL NUMBER: SB 1375	CHAPTERED  09/24/00

	CHAPTER   610
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 23, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	PASSED THE ASSEMBLY   AUGUST 22, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   JUNE 6, 2000
	AMENDED IN SENATE   MARCH 6, 2000

INTRODUCED BY   Senator Alarcon
   (Principal coauthor: Assembly Member Lowenthal)

                        JANUARY 20, 2000

   An act to amend Sections 33214, 33215, 33216, and 33353.2 of, and
to add Section 33214.5 to, the Health and Safety Code, relating to
redevelopment.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1375, Alarcon.  Redevelopment:  territorial jurisdiction.
   Under the existing Community Redevelopment Law, the territorial
jurisdiction of the redevelopment agency of a county over a project
area within territory subsequently annexed to a city or included
within the boundaries of a new city remains with the county
redevelopment agency unless the territorial jurisdiction is
transferred to the city redevelopment agency pursuant to specified
procedures.  The Community Redevelopment Disaster Project Law
authorizes until January 1, 2001, the establishment of a
redevelopment agency and the adoption and implementation of a
redevelopment plan within a disaster area.
   This bill would provide that the territorial jurisdiction of the
redevelopment agency of a city over a project area within territory
subsequently annexed to another city or included within the
boundaries of a new city remains with the city redevelopment agency
unless the territorial jurisdiction is transferred to the
redevelopment agency of the other city pursuant to the specified
procedures described above.  The bill would revise those procedures
to include transfers of territory from city redevelopment agencies to
redevelopment agencies of other cities.  The bill also would apply
those procedures to redevelopment projects in disaster areas.  The
bill would make a related change in the definition of the term
"affected taxing entity."


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 33214 of the Health and Safety Code is amended
to read:
   33214.  (a) Notwithstanding Section 33120, the territorial
jurisdiction of an agency in the county shall include all of the
unincorporated territory that was included in a project area selected
pursuant to Section 33322 or 34004 even if that territory is
subsequently annexed to a city or included within the boundaries of a
new city, unless territorial jurisdiction over the project area is
transferred from a county to a city pursuant to Section 33215 ,
33216, or 33217.
   (b) Notwithstanding Section 33120, the territorial jurisdiction of
an agency in a city shall include all of the territory within the
limits of the city that was included in a project area selected
pursuant to Section 33322 or 34004 even if that territory is
subsequently annexed to another city or included within the
boundaries of a new city, unless territorial jurisdiction over the
project area is transferred to the other city pursuant to Section
33215 , 33216, or 33217.
  SEC. 2.  Section 33214.5 is added to the Health and Safety Code, to
read:
   33214.5.  As used in Sections 33215 and 33216:
   (a) "Creating agency" means the community redevelopment agency
that created the project area that is to be transferred pursuant to
Section 33215 or 33216.
   (b) "Receiving agency" means the community redevelopment agency
that will acquire jurisdiction over a project area pursuant to
Section 33215 or 33216.
  SEC. 3.  Section 33215 of the Health and Safety Code is amended to
read:
   33215.  (a) If all of the territory included within a project
area, including any noncontiguous territory within the project area,
selected pursuant to Section 33322 or 34004 is subsequently annexed
to a city or included within the boundaries of a new city, the
territorial jurisdiction of the creating agency over all of the
territory in that project area may be transferred from the creating
agency to a receiving agency pursuant to this section.
   (b) The legislative body of the community of the receiving agency,
in which the territory described in subdivision (a) is located, may
unilaterally transfer the territorial jurisdiction described in
subdivision (a) if that legislative body agrees to reimburse the
community of the creating agency for all costs incurred by the
community of the creating agency in conducting the transfer and
adopts, or has adopted, both of the following ordinances:
   (1) An ordinance pursuant to Section 33101 declaring the need for
an agency to function in the city.
   (2) An ordinance adopting the same redevelopment plan for the
project area that was previously adopted by the legislative body of
the creating agency or an ordinance adopting that redevelopment plan,
with amendments.  However, no amendment to a redevelopment plan may
be adopted if the amendment would violate any agreement entered into
by the creating agency or its legislative body, as determined by that
legislative body, prior to the effective date of the transfer of
territorial jurisdiction, as determined pursuant to subdivision (c).

   (c) The effective date of the transfer of territorial jurisdiction
is the first day of the fiscal year that begins following the
effective date of the later enacted of the ordinances adopted
pursuant to subdivision (b).
   (d) The transfer of territorial jurisdiction shall have all of the
following effects on and after the effective date of the transfer of
territorial jurisdiction, as determined pursuant to subdivision (c):

   (1) The receiving agency and its legislative body shall have all
of the rights, powers, and responsibilities provided by this part
with respect to the project area and the redevelopment plan for that
project area.
   (2) The debts and any other obligations of the creating agency or
its legislative body in connection with the project area or the
redevelopment plan for that project area shall be assumed by the
receiving agency.
   (3) For the purposes of this part, including Section 33670, the
redevelopment plan for the project area for which territorial
jurisdiction is transferred from the creating agency to the receiving
agency pursuant to this section shall be considered to have been
adopted by the legislative body of the receiving agency on the date
the redevelopment plan was originally adopted by the legislative body
of the creating agency.
   (e) The creating agency, the receiving agency, and their
respective legislative bodies may enter into any agreements which
those entities mutually determine to be necessary or desirable to
facilitate the transfer of territorial jurisdiction provided for by
this section.
  SEC. 4.  Section 33216 of the Health and Safety Code is amended to
read:
   33216.  (a) If all, or a substantial portion, of the territory
included within a project area selected pursuant to Section 33322 or
34004 is subsequently annexed to a city or included within the
boundaries of a new city, the territorial jurisdiction of the
creating agency over all, or a substantial portion, of the territory
in that project area may be transferred from the creating agency to
the receiving agency pursuant to this section.  If all, or a
substantial portion, of the noncontiguous territory of a project area
of a creating agency is subsequently annexed to a city or included
within the boundaries of a new city, the jurisdiction of the creating
agency over all, or a substantial portion, of the noncontiguous
territory may be transferred to the receiving agency pursuant to this
section.
   (b) The transfer of territorial jurisdiction described in
subdivision (a) is not effective unless all of the following occur:
   (1) The creating agency and the receiving agency enter into the
agreement described in subdivision (c), and their respective
legislative bodies both adopt a resolution approving that agreement.

   (2) The legislative body of the receiving agency adopts, or has
adopted, both of the following ordinances:
   (A) An ordinance pursuant to Section 33101 declaring the need for
an agency to function in the city.
   (B) An ordinance adopting the same redevelopment plan for the
project area that was previously adopted by the legislative body of
the creating agency.
   (c) The agreement required to be entered into between the creating
agency and the receiving agency pursuant to paragraph (1) of
subdivision (b) shall contain all of the provisions described in
paragraphs (1), (2), (3), and (4), and may contain the provisions
described in paragraphs (5) and (6):
   (1) A provision specifying that all of the territory included
within the project area is transferred from the creating agency to
the receiving agency, or a provision specifying the portions of the
project area over which each agency will have territorial
jurisdiction.
   (2) (A) If all of the territory included within the project area
is transferred from the creating agency to the receiving agency, a
provision for the allocation of all of the taxes payable from the
project area pursuant to subdivision (b) of Section 33670 to the
receiving agency.
   (B) If a substantial portion of the territory included within the
project area is transferred from the creating agency to the receiving
agency, a provision for the allocation of taxes payable from the
project area pursuant to subdivision (b) of Section 33670 between the
receiving agency and the creating agency.  That allocation of taxes
shall be reasonably related to the costs that the community of the
creating agency and the community of the receiving agency expect to
incur in carrying out the redevelopment plan and the outstanding
indebtedness that the creating agency has incurred in carrying out
the redevelopment plan.  That indebtedness shall include repayment of
expenditures to, or on behalf of, the redevelopment project area
from other resources or borrowing of the creating agency.  That
allocation of taxes may differ from the allocation that would have
been made if the portion of the project area under the territorial
jurisdiction of the creating agency and the portion of the project
area under the territorial jurisdiction of the receiving agency had
been separate project areas at the time of adoption of the
redevelopment plan by the legislative body of the creating agency.
   (3) A requirement that all taxes payable from the project area
pursuant to subdivision (b) of Section 33670 that are allocated to
the receiving agency, as required by subparagraph (B) of paragraph
(2), shall be available if necessary to pay any indebtedness incurred
by the creating agency prior to the effective date of the transfer
of jurisdiction in connection with the project area and the
redevelopment plan if that indebtedness was secured by the taxes
payable from the project area pursuant to subdivision (b) of Section
33670.
   (4) If a substantial portion of the territory included within the
project area is transferred from the creating agency to the receiving
agency, a requirement that any amendment to the redevelopment plan
for that portion of the territory of the project area under the
jurisdiction of the creating agency shall, in addition to any other
requirements under this part, be approved by an ordinance adopted by
the legislative body of the receiving agency, and that any amendment
to the redevelopment plan for that portion of the territory of the
project area under the jurisdiction of the receiving agency shall, in
addition to any other requirements under this part, be approved by
an ordinance adopted by the legislative body of the creating agency.

   (5) If a substantial portion of the territory included within the
project area is transferred from the creating agency to the receiving
agency, a provision permitting the creating agency to undertake
activities to implement the redevelopment plan in portions of the
project area under the territorial jurisdiction of the receiving
agency or for the receiving agency to undertake activities to
implement the redevelopment plan in portions of the project area
under the territorial jurisdiction of the creating agency.
   (6) Any other terms and conditions that the creating agency, the
receiving agency, or their respective legislative bodies mutually
determine to be necessary or desirable to facilitate the transfer of
territorial jurisdiction over all, or a substantial portion, of the
project area and the implementation of the redevelopment plan.
   (d) The effective date of the transfer of territorial jurisdiction
is the first day of the fiscal year that begins following the
effective date of the resolution adopted pursuant to paragraph (1) of
subdivision (b), or the effective date of the later enacted of the
ordinances adopted pursuant to paragraph (2) of subdivision (b),
whichever date is later.
   (e) On and after the effective date of the transfer of territorial
jurisdiction:
   (1) Except as otherwise provided by the agreement entered into
pursuant to paragraph (1) of subdivision (b), the receiving agency
and its legislative body shall have all of the rights, powers, and
responsibilities provided by this part with respect to all, or the
portion, of the project area for which the territorial jurisdiction
has been transferred to the receiving agency and with respect to all,
or the portion, of the redevelopment plan for all, or that portion,
of the project area.
   (2) The debts and any other obligations of the creating agency or
its legislative body in connection with the project area, or a
substantial portion of the project area transferred to the receiving
agency, as the case may be, or the redevelopment plan for that
project area, or portion of the project area, shall be assumed by the
receiving agency.
   (3) For the purposes of this part, including Section 33670, the
redevelopment plan for all, or a substantial portion, of the project
area for which territorial jurisdiction is transferred from the
creating agency to the receiving agency pursuant to this section
shall be considered to have been adopted by the legislative body of
the receiving agency on the date the redevelopment plan was
originally adopted by the legislative body of the creating agency.
  SEC. 5.  Section 33353.2 of the Health and Safety Code is amended
to read:
   33353.2.  "Affected taxing entity" means any governmental taxing
agency that levies a property tax on all or any portion of the
property located in the adopted project area in the fiscal year prior
to the fiscal year in which the report prepared pursuant to Section
33328 is issued or in any fiscal year after the date the
redevelopment plan is adopted.  To the extent that a new governmental
taxing agency wholly or partially replaces the geographic
jurisdiction of a preexisting governmental taxing agency, the new
taxing agency shall be an "affected taxing entity" and the
preexisting taxing agency shall no longer be an "affected taxing
entity."
  SEC. 6.  The Legislature hereby finds and declares that the
amendment of subdivision (b) of Section 33215 of the Health and
Safety Code made by this act that changes the phrase "initiate the
transfer of" to "unilaterally transfer the" does not constitute a
change in, but is declaratory of, existing law.
